Parking Surplus Funds in Home Loan Account vs. Prepayment

This chapter explores the advantages of parking surplus cash in a home loan account to decrease interest payments as opposed to making a prepayment, discussing the flexibility provided by an overdraft loan for emergencies versus the permanency of prepayments. It compares the benefits of using a Fixed Deposit or investing in higher-yield instruments with the liquidity and interest savings of an overdraft loan for uncertain financial situations. The importance of conducting a thorough analysis before making decisions, considering individual circumstances and potential returns, is emphasized.